A charity that owes £1.54m in unpaid taxes to HMRC and made large payments to a firm linked to its chair has entered administration, the Charity Commission has announced.
Yesterday, the commission said William Blake House had entered administration, while the charity remains under investigation.
Financial and governance concerns about the charity were first raised with the regulator in November last year, prompting the latter to open a compliance case.
In February, the regulator escalated its engagement to a statutory inquiry after determining that there were “serious concerns around possible financial mismanagement which require a formal investigation”.
A month later, it appointed Adam Stephens of S&W Partners as interim manager of William Blake House to the exclusion of the charity’s trustees.
Following a financial assessment, Stephens determined “that it was necessary to place the charity into administration”, the regulator said this week.
On 30 March, Stephens issued an application to the High Court to place William Blake House into administration, and yesterday, he and his colleague Christopher Allen were appointed as joint administrators of the charity.
Administration provides ‘breathing space’ for charity
The regulator said that while in administration, William Blake House “will seek to continue to operate, with the legal process enabling the orderly management of the charity’s financial affairs as much as is reasonably practicable”.
“The joint administrators will continue to manage the charity through the administration process,” it said.
“They’ll explore alternative care options for residents, and will be liaising with affected families, West Northamptonshire Council and the Care Quality Commission”.
The regulator added that its inquiry will continue to examine William Blake House’s financial management and governance to understand the events and decisions that led to its serious financial challenges.
Amy Spiller, head of investigations at the Charity Commission, said: “We know it’s a difficult and uncertain time for those receiving care at William Blake House.
“The administration process provides a breathing space for the charity to continue its valuable service while financial restructuring is explored.
“Continuity of care is a priority, and efforts are being made by all involved to minimise disruption as much as possible.
“We’re monitoring events closely as part of our ongoing inquiry.”
Families welcome decision
A group of residents’ families told Civil Society that they “welcome the decision to place William Blake House into administration, after what has been an incredibly difficult and distressing six months”.
“It’s been upsetting to watch a charity set up over 20 years ago to care for some of the most vulnerable people reach a point where administration is our best option,” a representative said.
“We’ve all spent years fighting to secure the right care for our loved ones, who have complex and specialist needs.
“We have to remain hopeful that the next steps will prioritise continuity of high-quality care and safeguard the values and purpose that William Blake House was founded on.”
